1MDB: We are not debt-laden

Malaysia's attorney general said that 1MDB had not committed any offence.

PHOTO: AFP

PETALING JAYA - The Government investment firm, 1Malaysia Development Berhad, says labelling it as a "debt-laden company" is misleading.

In a statement, it said businesses had successfully used debts to build their asset base.

"In 1MDB's case, from RM1million (S$338,288.90) equity, total group shareholder equity of RM1.7billion was generated as of March 31, 2014.

"Notwithstanding the subsequent and ongoing challenges, which are well documented and acknowledged, 1MDB remains confident of generating surplus value as we progress with the rationalisation plan," 1MDB said in reply to Tan Sri Muhyiddin Yassin.

It said the characterisation of 1MDB as a "debt-laden company" was misleading as the former deputy prime minister knew fully well that the value of 1MDB's assets exceeded its debt.